Ann: $12m Placement Secured and $3m Priority Offer Underwritten, page-62

All,

Meir is correct about one thing - it is a pivotal time for the company.

They either swim or sink this year and there are many variables that will tie or untie this in 2019.

Is it good for LT SH? Yes & No.

The dilution is far from ideal.

Some SH view the board buying in as positive........well they had to IMO.
Meir and the Directors so they have the control in the company (i did not work out the exact numbers) & MM so this moves forward so he is one step closer to receiving his free shares (on top of that he is getting in at basement prices).

The following part people sometimes skip so it is important to highlight.

"i Subject to shareholder approval. ii Sky and Space may determine to raise a higher amount above the underwritten amount under the PO, up to an additional $1 million. iii As part of managing its future capital needs, alongside this capital raising process the Company has been renegotiating its payment terms and timing with its various key suppliers, to realign certain payment terms to coincide with future revenue to most effectively manage its future cashflows. In addition, the Company has identified various corporate overhead (a mixture of salaries, marketing, administration, and other operating expenditure items) that will also be reviewed to limit the Company’s cash burn until it achieves its first material contracted revenues. Through these two initiatives, the Board of SAS has determined that a $15 million minimum equity raising is the appropriate size to see the Company funded through to first revenue with adequate headroom, subject to the following assumptions being met:

1) Cost reductions being applied to the Company’s overhead base in the near term;
2) Successful negotiation of the timing of key payment tranches to key suppliers being made to coincide with the Company’s revenue generation in late 2019;
3) Virgin Orbit launch costs will be funded through US bank debt financing; the Company is currently in advanced discussions with a prominent debt financing provider to secure this funding, however nothing has yet to be formally approved. Further due diligence will be conducted over the next few months which, if successful, would result in finalisation and settlement of the debt financing to occur in mid-2019; and
4) Potential supplier delays and operational failures have not been factored in to the Board’s decision."

There are of course positives to every argument for example the expected avenues from the 3 binding contract - the bod estimates 10 to 12 mil. I expect this to be higher but we are not there yet.
Another positive is that we are in Feb. Not to much to wait to see if this fly's or not.

There is no doubt that many things have been missed. I will not go into specifics as these were discussed endlessly.

SH were told that the company will not need more then 35 employees. This was a while back and the company has developed but 80 employees seem very high.

Obviously the company needs the 3mil from current SH otherwise they would not offer it. So who's in?
I'm going to seat this one out.

I still support SAS as I believe they will deliver. The question is when and at what cost?

I think we all wish it was Q3 2019 already.

DYOR & GLTA